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AS NIGERIA INCHES TOWARDS CIRCULAR ECONOMY

Chukwuma Ngaha, in this analysis, points out that Prof. Nnanyelugo Ike-Muonso, Dr. Inyene Inkata and McArthur Foundation are leading advocacy for the adoption of raw materials circularity for Nigeria’s economic diversification and development. Excerpts:..

As Nigeria works to modernize its economy and diversify its industrial base, the concept of circularity in raw materials sourcing, development, and utilization is a powerful tool for economic recovery and sustainable industrial growth.

Industry expert, Dr. Inyene Inkata, says circularity, which is the reduction of waste, re-using materials, and promoting local value addition, is not just an environmental consideration but a critical strategy for creating jobs, boosting industrial productivity, and ensuring long-term economic resilience.

With the right policies and investments, Nigeria can harness the untapped potential of its raw materials and position itself as a leader in the circular economy, ultimately achieving a more sustainable and prosperous future.

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“Circularity, in its essence, is about creating a closed-loop system where raw materials are continuously recycled, repurposed, or reused, thus reducing the need for new resources.” he added.

This approach according to him, contrasts with the traditional linear economy, where resources are extracted, used, and discarded, leading to waste and environmental degradation, adding that for a growing economy like Nigeria, embracing circularity is not just an environmental imperative—it is a strategic economic move that can stimulate industrialization, job creation, and sustainable development.

Adopting circular practices in raw materials management offers multiple benefits. According to the Ellen MacArthur Foundation, circular economy models can reduce greenhouse gas emissions by 50%, cut waste by 50%, and increase GDP by 1% by 2030.

In Nigeria’s case, circularity could lead to the creation of over 1 million new jobs in sectors such as recycling and waste management by 2025 (World Bank).

Additionally, by increasing resource efficiency and reducing waste, Nigeria’s GDP could grow by 3% by 2025, while its reliance on imported raw materials could be reduced by 30% (RMRDC). These statistics underscore the immense potential of circularity in transforming the Nigerian economy.

In Nigeria, the adoption of circular economy practices could foster the creation of new industries, revitalize existing ones, and offer employment opportunities across various sectors. One notable example is the recycling and repurposing of electronic waste, or e-waste. In a recent exploration of how broken laptops can be deconstructed into valuable components like smart loudspeakers or high-quality parts, the potential for circularity in Nigeria becomes clear. These items, once deemed obsolete, can be transformed into marketable products, generating both economic and environmental value.

Circularity is not limited to e-waste. From plastics to agricultural by-products, construction materials to textiles, the possibilities for repurposing are vast. In a country like Nigeria, where waste management and resource scarcity are pressing issues, circularity can breathe new life into stagnating industries and create value from what would otherwise be discarded. By fully embracing circular practices, Nigeria can address the challenges of waste disposal and resource depletion while unlocking new economic opportunities.

A critical area where circularity can drive significant change is in Nigeria’s underutilized livestock sector, according to Prof. Nnanyelugo Ike-Muonso, Director General (DG/CEO) of the Raw Materials Research and Development Council (RMRDC), has emphasized the importance of exploring alternative sources of raw materials to support the nation’s agricultural and manufacturing sectors.

According to Ike-Muonso, raw materials from the livestock sector, such as hides, bones, and by-products, are often exported with little value addition. This deprives Nigeria of critical economic value and contributes to the depletion of resources.

To truly unlock the potential of Nigeria’s livestock sector, circularity can play a pivotal role. By repurposing livestock by-products into valuable materials for leather production, fertilizers, and animal feed, Nigeria can enhance its agricultural output and support the growth of new industries. The establishment of modern meat and dairy processing plants, alongside tanneries for high-quality leather production, presents a significant opportunity to add value to local resources, create jobs, and reduce dependency on imports. These initiatives could also bolster Nigeria’s export capabilities, further diversifying its economy.

Nyene Inkata, added that circular economy practices, circularity presents substantial opportunities for entrepreneurship, job creation, and social inclusion. In her article, Entrepreneurialism and the Circular Economy in Nigeria, she argues that circular practices such as recycling, waste-to-energy projects, and agricultural by-product repurposing can stimulate local enterprises, particularly in the areas of waste management and sustainable production.

With Nigeria’s rapid population growth and urbanization placing increasing pressure on waste management systems and natural resources, circularity offers a way to address these challenges. By developing infrastructure for recycling, waste-to-energy initiatives, and material repurposing, Nigeria can alleviate environmental concerns while also creating new sources of income and employment. From converting agricultural waste into biofuels or compost, to refurbishing electronics and recycling plastics, the circular economy can help Nigeria build a more sustainable and resilient economy.

Recognizing the potential of circularity, the RMRDC, is collaborating with the National Environmental Standards and Regulations Enforcement Agency (NESREA) to foster circular economy practices.

The duo of Ike-Muonso and Dr. Innocent Barikor, Director General of NESREA, have emphasized the importance of developing data systems and recycling infrastructure to ensure a reliable supply of secondary raw materials for Nigerian industries. This inter-agency partnership is a vital step toward integrating circularity into Nigeria’s industrial strategy and ensuring environmental sustainability.

By working together to streamline waste collection, recycling, and repurposing initiatives, RMRDC and NESREA hope to create the foundation for a more sustainable and circular Nigerian economy. These efforts can pave the way for the establishment of circular supply chains, reduce reliance on imported raw materials, and foster green job creation across various sectors.

In conclusion, as Nigeria grapples with the complexities of economic growth and industrialization, embracing circularity in raw materials sourcing, development, and utilization offers a unique pathway to a more self-sufficient and sustainable economy.

The potential benefits—ranging from job creation to reduced environmental impact, and increased industrial productivity—are too significant to overlook. However, to fully realize these benefits, Nigeria requires a concerted effort from other agencies of government similar to RMRDC and NESREA, industries, and entrepreneurs to create an enabling environment for circular practices.

The leadership Ike-Muonso at the RMRDC is crucial in advocating for the adoption of circularity, particularly in raw materials management. His calls for a more sustainable, value-added approach to Nigeria’s raw materials are in line with the nation’s broader objectives of industrial growth and economic recovery. By focusing on resource conservation, waste reduction, and local value addition, Nigeria can not only achieve sustainable development but also set a model for other African nations to follow in the pursuit of a circular economy.

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